Abstract [en]

This study aims to analyse the market for structured products in general and the pricing of equity­linked bonds and warrants in particular. The price of the equity­linked bonds is calculated combining the Black­Scholes­Merton’s model for pricing options with bond theory and the pricing of warrants is also modeled with Black­Scholes­Merton’s model. Thereafter the study examines whether the four major Swedish banks’ stated arrangement fees are consistent with the true estimated fees according to financial theory. The result indicates on a general level that the true fees exceed the fees that are stated in the term sheets of the products. The study further connects the result to the banks’ way of conducting business on the financial market for structured products, viewed from a CSR perspective, and analyses how fair the market is for private investors. The conclusion is that the banks have made progress with regards to CSR in recent years, with new laws and regulations in place. However there is still aspects that can be improved for the market of structured products to become more transparent and fair.